Currency pair Euro/Dollar EUR/USD continues to move as part of another growth and an upward channel. Moving averages indicate a short-term bearish trend for the pair. However, prices have broken through the area between the signal lines upward, which indicates pressure from buyers of the European currency and a potential continuation of growth from the current levels. At the time of the publication of the forecast, the Euro/US Dollar rate is 1.1783. There is potential for an inverted head and shoulders pattern to be formed in favor of the pair continuing to rise. As part of the Forex forecast for October 20, 2020, we should expect an attempt of a downward correction and a test of the support level near the 1.1755 area. Further, a rebound and continued growth of the Euro/Dollar currency pair. The potential target of such a movement on FOREX is the area above the level of 1.1985.
EUR/USD Forecast Euro Dollar October 20, 2020
An additional signal in favor of raising the EUR/USD quotes will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the growth option for the quotes of the Euro/Dollar currency pair will be a fall and a breakdown of the level of 1.1635. This will indicate a breakdown of the resistance area and a continued rise to the area at 1.1405. Expect confirmation of growth in the EUR/USD currency pair with the breakdown of the resistance area and closing prices above the level of 1.1895.
Among the important news from Europe and the USA, which may have an impact on the EUR/USD pair, it is worth highlighting: United States Building Permits.
EUR/USD Forecast Euro Dollar October 20, 2020 assumes the development of a correction and a test of the support area near the level of 1.1755. Where can we expect a rebound and an attempt to continue the growth of the pair to the area above the level of 1.1985. A test of the trend line on the relative strength index (RSI) will be in favor of raising the currency pair. Cancellation of the EUR/USD growth option will be a fall and a breakdown of the level of 1.1635. This will indicate a breakdown of support and a continuation of the fall of the currency pair on Forex to the area below 1.1405.
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